Electricity rate hike talks to be preceded by conferences with intervenors

The much-anticipated public hearings for a review of electricity rates in Barbados are expected to start around the middle of next month.

After having approved eight intervenors who will be challenging proposed basic rate increases by the Barbados Light and Power Company Limited (BL&P), the utility regulator said on Thursday the face-to-face hearings could get underway mid-May at the latest.

However, while pointing out that a final date was yet to be decided, Chief Executive Officer (CEO) of the Fair Trading Commission (FTC), Marsha Atherley-Ikechi said a series of conferences that would include the intervenors must first be held to determine the date, how the hearings would be conducted and the length of time.

“The first thing that is suppposed to take place…a procedural conference at some point, and then a confidentiality and technical conference that will take place, again, hopefully before the end of this month,” Atherley-Ikechi told Barbados TODAY.

She said that even though the FTC has scheduled some tentative dates, things should become a little clearer within the next “couple of weeks.”

“The conference with the intervenors would indicate the issues we would look at and then we will begin to set timelines. The number of days set for the hearings would depend on the number of issues that would come out, because all of the issues that are put on the table are not necessarily the ones that will go forward. There will be discussion and agreement on what are the issues that will go forward.” the spokesperson for the utility regulator stated.

She also explained that the interim relief being sought by the Light and Power Company forms part of the hearing process as well.

“We had some internal discussion and we are moving forward on that. But there are issues of the confidentiality request that we have to deal with as well. So a number of things are happening simultaneously,” she declared.

“The face-to-face aspect of the hearings will come later, but we have to dispense with the formalities including the procedures, what are the issues to be considered, what are the timelines; and then we will go into that. By the middle to the end of next month, you should definitely be seeing more things happening and the intervenors would be able to report to you on their involvement to date,” Ikechi-Atherley stressed.

On Wednesday, the intervenors comprising two government divisions, two associations, two coalitions and two individuals, pledged to take on the BL&P to ensure that consumers are not disadvantaged in the company’s efforts to obtain new rates so it can raise $440.2 million in revenue.

One of the intervenors, attorney Tricia Watson said while the objectors accept that the increasing global oil prices will cause light bills to rise, they will be fighting to ensure the rates being sought by the power provider are fair.

The proposed hike in rates coincide with the company’s recent increase in the Fuel Clause Adjustment (FCA) element of the light bill for the month of April to about 45 cents per kilowatt-hour, 22 cents more than in March.

The application to the FTC for a basic rate hike represents an increase of $46.5 million a year.

The intervenors are adamant that they will question the fairness of an increase, given that the BL&P has not acted prudently since receiving a rate hike from the regulator in 2009.

The power company wants customers to pay an additional $2 per month if they use upwards of 150 kilowatts of eletricity per hour; $4 per month more for consuming between 151 and 500 kwh and an extra $6 if their energy usage exceeds 500 kwh a month. emmanueljoseph@barbadostoday.bb